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Contracting through foreign country company

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    #11
    Originally posted by gabox01 View Post
    What about taxation in this case?

    I mean is it OK, to charge my UK customer 400+VAT/day, and pay all the taxes in Hungary? I would like to avoid the complexity of double taxation (if such thing exists, i'm not sure)
    It depends if you're tax resident in Hungary or the UK, or both.
    ContractorUK Best Forum Adviser 2013

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      #12
      Originally posted by gabox01 View Post
      What about taxation in this case?

      I mean is it OK, to charge my UK customer 400+VAT/day, and pay all the taxes in Hungary? I would like to avoid the complexity of double taxation (if such thing exists, i'm not sure)
      It is not a matter of election. If it were I'd happily have spent 30 odd years working out of a gibraltar based co.

      It is a matter of the facts pertinent toy your case.

      Your residence is important (and that doesn't mean where you live, it is quite possible to be tax resident in multiple jurisdiction).

      Your domicile is important.

      Where you have ties to is important.

      The same also goes for the company.

      There is then the matter of the local laws where you are working.

      Generally though it will all come out in the was without too much problem (unless you want a fancy scheme).

      I(f you work on the basis that the worst you will pay will be the higher of the rates in the countries involved then you won't go far wrong.

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        #13
        Originally posted by gabox01 View Post
        Hi,

        Let's say i have a company in Hungary, and want to contract through that company in UK, and probably in Switzerland.

        Can i do that?
        Are there any negative effects?

        Thanks
        Dear gabox01,

        Could you please share your experience with working in the UK via a non-UK company. Any information you could share would be greatly appreciated.

        Thank you

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          #14
          Originally posted by Confounded View Post
          Dear gabox01,

          Could you please share your experience with working in the UK via a non-UK company. Any information you could share would be greatly appreciated.

          Thank you
          Not likely, the OP was banned.

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            #15
            Actually I think the British term tax resident is a bad term as it implies you pay tax or not pay tax.

            First of all HMRC doesn't use the term "tax resident", they use the term resident. You are only resident in one country, however you are liable for tax wherevever you earn money. If you are resident in the UK you pay tax on your wordwide income, but there are plenty of non-residents in the UK who perhaps commute over. For example a Calais resident commuting to Dover for a few months will be French resident but not a British resident, but will pay tax on his UK income. He will not have dual residency. That is excluded in all tax treaties in the EU and Switzerland.

            The German's use a more approriate term "unbeschränkt Steuerpflichtig" roughly translated means "unlimited tax liability" which means nothing more than you are liable for tax on all your worldwide income. However even if you are not "unbeschränkt Steuerpflichtig" you are still liable for tax, i.e. "beschränkt Steuerpflichtig" or limited tax liability.

            Just wanted to clarify that point
            Last edited by BlasterBates; 15 October 2015, 18:15.
            I'm alright Jack

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              #16
              Originally posted by jamesbrown View Post
              Not likely, the OP was banned.
              Dear jamesbrown,
              Thank you for your reply. Perhaps you could point me to either a thread that has discussed this topic (non-UK-domicile working in the UK on a long-term contract between a UK-based company and non-UK-based company) or a consultancy company that can deal with this topic. Thank you

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